David,who Is Single,received His Degree in 2013,and Took a Job

question 100

Essay

David,who is single,received his degree in 2013,and took a job earning $62,500 per year.In 2013,he was required to begin making payments on his qualified education loans.In 2014 he paid $1,350 in interest on those loans.How much can he claim as an educational loan interest deduction for the year?

---

Definitions:

CPI

An index measuring the average change over time in the prices paid by urban consumers for a market basket of consumer goods and services.

Consumer Price Index

An index measuring the change over time in the price level of a market basket of consumer goods and services purchased by households.

Purchasing Power

The real value of money in terms of the quantity of goods or services that one unit of money can buy.

Annual Interest Rate

The percentage rate at which interest is charged or paid on an amount over a year.